Thursday was mostly positive day for our markets. Spot corn closed down 1/4, spot soybeans closed up 2, harvest winter wheat closed up 7 and harvest spring wheat closed up 5. In the overnight trade all of our markets are on the positive side. Oil closed up $4.16 yesterday at $94.48 per barrel. It is stronger again this morning with it now valued at $96.97 per barrel. Our dollar has traded between a low of $0.721 US and a high of $0.723 US over the last 24 hours. This morning it is right in the middle of the range with it currently valued at $0.722 US.
Our markets were supported yesterday by mostly strong weekly export sales out of the US. The market sees this as nothing new for the corn market however strong export numbers do help the soybean and wheat markets a bit more.
Crude oil prices have jumped back up with the market place not responding this time to President Trump talking about ending the current conflict in Iran. It looks like the analysts are waiting to actually see progress made in reopening the Strait of Hormuz before they price this into the market.
The extended weather forecast does show precipitation coming to the dry areas in the US where the majority of their HRW wheat is grown. Last year this area was dry at this time but April showers ending up supporting the crop and they had a strong yield. In saying this we need to be aware that the current strength in this market can easily disappear if sufficient rains come over the next month.
Soybean oil prices continue to provide support for the soybean market. This market has closed higher for 12 of the last 14 trading weeks. Support of course is coming from the demand for soybean oil usage in the biodiesel market in the US.
Today is President Trumps ‘Celebration of Agriculture’ meeting at the White House. It is widely expected that his administration will announce new bio fuels regulation going forward. It has been rumoured that this will include increased biodiesel blending guidelines and hopefully increased ethanol usage also.
Friday’s thought: I love people that have no idea how wonderful they are and just wander around making the world a better place!
Delores Seiter | 613-880-7458
Bob Orr | 613-720-1271
Tony Mitchell | 613-227-2525
Office | 613-489-0956
